When it is time to purchase insurance for your Nissan SUV, there will be different options in front of you. You could choose to go with the minimum amount of liability coverage allowed by law. Alternatively, you could choose a full coverage policy at a higher price that provides greater protection.
The cost associated with your insurance will depend, in part, on what policy you choose. However, this is only one of the factors that could have an impact on the cost of your car insurance.
The purpose of full coverage car insurance is to ensure you are protected financially in case of an accident. Minimum insurance policies only cover the damage you cause to other drivers. A full coverage policy will protect you from third-party claims and pay for your losses.
Full coverage policies are made up of different types of coverage. In addition to liability coverage, you also receive comprehensive and collision coverage as well. Liability insurance exists to protect you from claims from other parties. If you cause an accident, your liability coverage can pay for the property damages and bodily injuries suffered by the other parties.
Collision insurance covers your losses in a crash. As the name suggests, this insurance covers damages when you collide with something else. This includes collisions with other vehicles, fixed objects, or even cyclists.
Finally, full coverage policies also include comprehensive coverage. Comprehensive covers the property losses that do not stem from a collision. In other words, you could receive compensation based on damage caused by severe weather or vandalism.
State Minimum Liability
On the other end of the spectrum is the state minimum liability insurance coverage. Every state requires motorists to carry a minimum amount of liability insurance before they can drive. This is to provide peace of mind knowing that a motorist who causes an accident has the resources to pay for your losses.
The limits set in one state may be different from those in another. However, each state typically requires a motorist to carry a minimum amount of coverage for bodily injury costs per person, bodily injury costs per accident, and property damage losses per accident. For example, Missouri requires drivers to carry $25,000 in bodily injury per person, $50,000 in bodily injury per accident, and $25,000 for property damage per accident.
Missouri also requires uninsured motorist coverage. This is an inexpensive add-on to your policy that is well worth it if you get hit by a driver with no insurance or a hit and run.